McGmitter (002851): Electric vehicle products continue to explode and high growth continues to materialize

McGmitter (002851): Electric vehicle products continue to explode and high growth continues to materialize
Highlights of the report The event describes the company’s first quarter report for 2019 and achieved revenue7.7.4 billion, an annual increase of 101%; net profit attributable to shareholders of the parent company is 0.5.8 billion, an annual increase of 139%; net profit attributable to shareholders of the parent company after deduction of 0.530,000 yuan, an annual increase of 255%.The actual performance growth rate falls below the upper limit of the Air Force’s performance forecast interval.  Incident review The minority shares of the three holding subsidiaries acquired by the company were consolidated in the second half of last year. In order to eliminate the impact of statistical calibers, the company mainly analyzes the company’s profit and net profit without deducting minority shareholders’ equity. The company’s profit in the first quarter of 2019 increased67%, net profit increased by 58% each year; maintain a beautiful growth rate.In terms of profitability, the company’s Q1 gross profit margin is expected to be 24 due to changes in product structure.55%, ten years ago4.9pct; decrease, because the company adopts the benchmark customer sales model, the marginal growth of expenses is significantly slower than revenue. Under the dilution of the company’s doubled revenue growth, the expense ratio improved during the period, reducing at least 7.4pcct; budget, the company’s Q1 asset impairment losses increase by approximately 10.62 million yuan each year, and the increase in net investment income decreases by approximately 淡水桑拿网 2.87 million yuan.  In terms of business lines, it is expected that the company’s 2019Q1 revenue and high profits will be mainly contributed by electric vehicle-related products.The company’s main supporting BAIC new energy EU / EX models have achieved high growth in 2019Q1 (according to certification data, 2019Q1 EU / EX total output reached 15,751 units, 2018Q1 output was 611 units), judging the continuation of the company’s electric vehicle drive productsThe explosive trend of length, meanwhile, the electric vehicle products expected to be driven by the industry expansion and new customer breakthroughs have gradually become a higher sales growth rate.In addition, it is expected that some of the company’s traditional main products and newly expanded products Q1 have also achieved a certain growth, and together they will help the company’s continuous high growth rate.  In addition, the company’s overall financial status is healthy. The biggest highlight is the improvement in the repayment situation of downstream customers, and the company’s 2019Q1 net operating cash flow inflow.700 million, a significant increase from 2018.  The company’s product line has a weak correlation with the manufacturing cycle, and R & D drives the continuous breakthrough of new categories; and it has begun construction of new bases in order to break through capacity breakthroughs and improve professionalization of division of labor.The company’s 2019 performance is expected to maintain high growth.Excluding the dilution caused by the issuance of convertible bonds and the impact of the acquisition of 14% equity in Jardine Sanitary Ware, the net profit attributable to shareholders of the parent company in 2019 and 2020 is 3, respectively.4,4.400 million, corresponding to PE is 29, 22 times.Maintain BUY rating.  Risk Warning: 1. Production and sales of electric vehicles fell short of expectations; 2. The company’s new product expansion was less than expected.